BofA Weighs Sale Of China Construction Bank Shares

The lockup agreement expires tomorrow on a third of Bank of America’s 16.7% stake in China Construction Bank. Will it sell? The U.S. bank will also find out the same day the result of its stress test. Reuters is reporting that it will need an additional $34 billion of capital. Selling the CCB stake would raise more than $8 billion based on current market prices, its shares having out performed the broad market over the past week. BofA has said it wants to remain a strategic long-term shareholder in CCB, and would still hold more than 10% if it sold the unlocked shares, but short-term imperatives are weightier considerations right now.